Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from both the prior quarter and the same quarter one year earlier, driven by a combination of lower capital expenditure and stable operating cash flow. The free cash flow margin reached its highest level among the three periods compared.
- Revenue was slightly lower than the prior quarter but unchanged from a year ago. Operating cash flow was higher than the prior quarter and stable versus the prior year. Capital expenditure declined compared to both the prior quarter and the year-ago period, resulting in improved free cash flow and a higher free cash flow margin.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin both improved. Compared to the year-ago quarter, revenue was stable, operating cash flow was stable, capital expenditure was lower, and free cash flow and its margin both improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$709.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$677.0M
Capital spending and related asset purchases.
FCF margin
20.2%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-03-31 | $3.4B | $1.3B | $719.0M | $536.0M | 15.7% |
| 2025-06-30 | $3.6B | $635.0M | $776.0M | -$141.0M | -3.9% |
| 2025-09-30 | $3.6B | $1.3B | $730.0M | $607.0M | 16.9% |
| 2025-12-31 | $3.5B | $1.4B | $677.0M | $709.0M | 20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was lower than both the prior quarter and the year-ago quarter, while revenue and operating cash flow remained relatively stable. This reduction directly supported higher free cash flow and an improved margin.
Lower capital spending enabled free cash flow and margin to reach their highest levels across the three periods compared.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but unchanged from a year ago. Operating cash flow was higher than the prior quarter and stable versus the prior year. Capital expenditure declined compared to both the prior quarter and the year-ago period, resulting in improved free cash flow and a higher free cash flow margin.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin both improved. Compared to the year-ago quarter, revenue was stable, operating cash flow was stable, capital expenditure was lower, and free cash flow and its margin both improved.
Monitor capital expenditure levels, as their decline was the primary factor behind the improved free cash flow.